Research & Resources
Featured Research
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Morningstar's Research - Commercial Real Estate Investment: REITs and Private Equity Real Estate Funds
New!
Morningstar's commercial real estate investment report evaluated the performance of commercial real estate investments made through publicly traded equity REITs and private equity real estate funds. Morningstar found that publicly traded equity REITs have outperformed private equity core, value-added, and opportunistic funds consistently over the long term, experienced stronger bull markets, recovered faster from downturns, and had lower fees and expenses on average compared with private real estate funds.
»» Visit our Featured Research page to learn more about Morningstar's research, view the data in an interactive slideshow and more.
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URDANG Recommends Investors Consider Holding Both REITs and Private Real Estate
Institutional real estate investors should consider including both real estate investment trusts (REITS) and private real estate in their portfolios as both provide distinct advantages, according to a report from URDANG, the real estate investment manager and part of BNY Mellon Asset Management.
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REITs and Private Equity Real Estate Funds: The Blended Portfolio Advantage
A new NAREIT analysis of nearly 22 years of data shows the diversification achieved by blending public REITs with private equity real estate produces superior portfolio returns with lower risk, delivering significantly increased Sharpe ratios (risk adjusted returns).
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REITs: Real Estate With a Return Premium
A NAREIT analysis of the performance of publicly traded equity REITs and private equity core, value-added and opportunistic funds over the last full real estate cycle shows REITs outperformed private equity real estate funds over the entire cycle, as well as over the bull market portion of the cycle when value-added and opportunistic funds’ higher leverage would have been expected to deliver superior returns.
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The Truth About Real Estate Allocations
This analysis from investment management firm Cohen & Steers reviews the performance of publicly traded REITs and core, value-added and opportunistic private equity real estate funds over various periods on a net-of-expenses basis. The paper explores the possible reasons for REITs' outperformance, based on the comparative business models of REITs and private equity real estate funds.
Additional Research and Resources on Public and Private Real Estate
Academic Studies
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"Privately Versus Publicly Held Asset Investment Performance," by Timothy J. Riddiough, Mark Moriarty & P.J. Yeatman. The paper is published in Real Estate Economics, Vol. 33, No. 1, pages 121-146, March 2005, and is available here for purchase.
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"Public Versus Private Real Estate Equities: A More Refined, Long-Term Comparison," by Joseph L. Pagliari, Kevin A. Scherer & Richard T. Monopoli. The paper is published in Real Estate Economics, Vol. 33, No. 1, pages 147-187, March 2005, and is available here for purchase.
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"A Successive Effort on Performance Comparison Between Public and Private Real Estate Equity Investment," by Jengbin Patrick Tsai. The paper is available available here.
From the Media: Articles of Note
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